Hey guys, today i want to share with you a simple pattern formation that occurs very often in the market that's very effective. It's the double top; it happens whenever price action fails in making new highs in a bullish market. This could be the first sign of a reverse and draws traders to the market. Here on NZDUSD we are in a long bullish trend and price completed a Cypher formation on daily timeframe. Furthermore, the black line represents a daily structure level that seems to hold. The RSI shows us divergence (and it's always a good sign of reversal). The last thing i want to see is an engulfing candle that came right now. For all those reasons i'm selling this market at the first little pullback that gives me a 1:1 RR at the retest of the lows.
If you have any questions, feel free to comment below. Otherwise, see you in the next chart!
Order avbruten
⋅
Price touched the first target level withouth pulling back. The trade is invalidated.
are you going to share TP, Entry, SL for noobs who are learning right now. I mean when the time comes :)
Roker1
⋅
Hey @ikovachky, actually in this case i've put green and red rectangles lining up with stop and target levels
ikovachky
⋅
@Roker1, i have seen that and i can use them.... just bitter experience from overtrusting and over following.... excuse me if you got me in the other way (beer)
Roker1
⋅
@ikovachky, don't worry mate, come back whenever you want! Always a pleasure
ikovachky
⋅
@Roker1, thank you mate, i am eager to know and understand the things but there aren't many people sharing knowledge and not being offended when you ask too many questions. Peace with the greenfish who wants to know not just to copy .... ;)